Business vs Employment

Companies and businesses get spend their income first via expenses, before they are taxed (income tax). Employees meanwhile pay their income tax first, before they get to spend what’s left of it

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I’ve always wanted to have and run a business.

Fresh from college, I already knew that employment will be a medium-term solution for me, and that in the long run, if I want to make it big, I will need a successful business (or businesses).

This mindset was further supported after I have read Robert Kiyosaki’s Rich Dad, Poor Dad (RDPD) and The Cash Flow Quadrant (TCFQ). These books made me realize the following truths (you don’t have to buy these truths though):

Being employed can only take me somewhere. At the end of the day, I’m still at the mercy of company (with all the movements I’m seeing), the shareholders (and by the way share price has been flat the past 2 years. Why oh why?) and owners (the boss of the boss of our very big boss. I wonder what the view is like up there).

Companies and businesses get spend their income first via expenses, before they are taxed (income tax). Employees meanwhile pay their income tax first, before they get to spend what’s left of it, if any (If you’re employed, check how much taxes you pay monthly and multiply it by 12. That’s your support to the government. Then next thing is you wonder what happens to that amount of money. Where’d it go? Sa daang matuwid…)

Having a business of your own is more risky than being employed primarily in terms of cash flows,most especially in the short-run. But you have to start something somewhere now if you want to be someone and somewhere better in the long haul. So I recommend a mix of both at the beginning of your business. Just make sure it’s allowed by your employer.

I’ve been employed the past 4 years and along the way, I’ve always been on the lookout for potential business opportunities. I also read a lot of business news, engage in the stock market, and the Entrepreneur magazine has been a constant companion of mine.

Funds I’ve diligently set aside for a possible business have been consumed for some more urgent want/need, replenished and depleted again and again throughout the years. Still no major business to brag about. They say I should start with something I really like. So education? Food? What if I like a lot of things?

Or what if I like to have a business, whatever it is (legal of course)? Maybe the thrill of running and managing one is what excites the businessman in me. And the positive cash inflows of course.

So I remain on the lookout. Still in the drawing board phase. Though as of today, I have 2 mini-businesses. An eloading business where my office is a captive market; and a personalized printing business which is a partnership with my girlfriend. I’ve been running the eloading business for more than 2 years now, income is stable and easy to manage, but growth prospect is very limited – unless I venture into networking and multi-level marketing (note: not pyramiding) like what others in this eloading business do. But I feel like I’m not sold into that kind of business, even though recruiters brag about how much they have made (and how many one-downs and branch networks are working their ass off to make the network heads richer). The personalised printing business meanwhile is still in its soft-launch mode so for me, there are still a lot of things to fix and finalise before we go to full-blast marketing.

Still, modesty aside, these are not the full-pledged business I’m looking for. A good experience, a good try nonetheless. I welcome the experiences from my two mini-attempts to prepare me for bigger ones. But 4 years out of college, I have this feeling that I should have already figured it out by now. Deep inside I’m confident that I was born to run a business (right God?). But as to what it is, I do not know. Maybe God has a different business plan for me? Be a fisher or men?

Am I the likes of giant names who started their businesses during their senior, past midlife years? But how about Facebook’s Zuckerberg?

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Founder and main author. Husband, used-to-be-breadwinner, God-made multi-millionaire, employee, financial planner and adviser, investor, stocks trader, entrepreneur, agri-preneur, book author. Firm believer that all Pinoys deserve a richer life. Not a guru, but a forever student of the investments world, a work-in-progress.

2 Comments on Business vs Employment

Hi Jonalyn. Glad to have inspired you in our own small way. Online business is doing great, great ROI. We're trying to find ways how to grow it further. Farm and cattle investments are still in incubation stage so no returns are still small but hopefully we'll get there. Still on the lookout for other passive income sources. Hope you do the same. 🙂

Hello, I'm Jonalyn ofw from Hk. I bump into this article and it really inspire me. I'm just curious sir Geri how's your business doing now?. While I'm wirking here In Hk as Dh I'm also operating an online business in pinas and here in Hk although the ROI isn't that big yet it's promising industry since everyone is engage in online and social media.

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